Semiconductor Industry Market Size (2024 - 2029)

The market size of the semiconductor industry is expected to experience robust growth, driven by the sector's rapid expansion and its role as a key component in modern technology. The increasing need for semiconductor materials in emerging technologies, such as artificial intelligence and autonomous driving, is predicted to further fuel this growth. In addition, the rising adoption of electrification and autonomy in various industries, particularly in electric vehicles, is anticipated to boost demand for semiconductor devices. However, the industry faces challenges such as the need for more skilled workers, long lead times, high capital investments, and potential supply chain shortages. The COVID-19 pandemic has also impacted the sector, leading to restructuring of supply chains for enhanced resilience.

Market Size of Semiconductor Industry

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Semiconductor Industry Summary
Study Period 2021-2029
Market Size (2024) USD 0.72 Trillion
Market Size (2029) USD 1.21 Trillion
CAGR (2024 - 2029) 10.86 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Semiconductor Industry Major Players

*Disclaimer: Major Players sorted in no particular order

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Semiconductor Market Analysis

The Semiconductor Industry is expected to grow from USD 0.72 trillion in 2024 to USD 1.21 trillion by 2029, at a CAGR of 10.86% during the forecast period (2024-2029).

  • The semiconductor sector is experiencing a swift expansion as semiconductors are becoming the fundamental components of contemporary technology. The progress and breakthroughs in this industry are directly influencing all subsequent technologies.
  • Semiconductor devices are electronic components that use semiconducting material as their foundation. This material produces transistors, diodes, and other fundamental functional units found in integrated circuits (ICs). These devices are characterized by their ability to neither conduct electricity well nor act as effective insulators. The benefits of semiconductor devices encompass their affordability, dependability, and compact size. Over the past few decades, the utilization of these devices in the production of diverse electronics has surged in popularity, and it is projected to continue gaining momentum in the forthcoming years.
  • The semiconductor industry is projected to experience strong growth in the foreseeable future as it caters to the rising need for semiconductor materials in emerging technologies like artificial intelligence (AI), autonomous driving, the Internet of Things, and 5G. This growth is fueled by intense competition among key players and consistent investment in research and development (R&D). As a result, vendors are constantly driven to innovate and gain a competitive advantage in the market.
  • The market demand for semiconductor devices is projected to rise due to businesses' widespread adoption of electrification and autonomy. Electric vehicles are spearheading the movement toward a sustainable future, with electronics and semiconductors serving as crucial components. Governments across the globe are setting ambitious goals for the electrification of their transportation sectors, prompting leading automakers to make substantial investments in electric vehicle research and development. Semiconductors are emerging as the central processing units of EVs, empowering them to deliver optimal performance. Consequently, the growing investments in electric vehicles are anticipated to fuel the demand for the semiconductor market.
  • The semiconductor industry needs more skilled workers. By the year 2030, more than one million additional skilled workers are likely to be needed to meet the industry's demand. Further, the semiconductor industry is characterized by long lead times and high capital investments. Manufacturing capacity constraints and changes in demand have led to shortages in the supply chain. These factors are expected to challenge the market's growth.
  • The sector has undergone substantial changes due to COVID-19, impacting customer behavior, business revenues, and corporate operations. Additionally, the pandemic has revealed previously unnoticed risks on the supply side, potentially resulting in shortages of essential parts and components. Consequently, semiconductor companies are proactively restructuring their supply chains to enhance resilience, and these adjustments may persist in the post-pandemic era.

Semiconductor Industry Segmentation

Semiconductors are essential technology enablers that power many of the cutting-edge digital devices. The global semiconductor industry is set to continue its robust growth well into the next decade due to advancements in emerging technologies, such as autonomous driving, artificial intelligence (AI), 5G, and Internet of Things (IoT), coupled with consistent spending on R&D and competition among the prominent players.

The semiconductor industry landscape into semiconductor devices (discrete semiconductors, optoelectronics, sensors, and integrated circuits), semiconductor equipment (front-end equipment and back-end equipment), semiconductors materials (fabrication and packaging), semiconductor foundry market, outsourced semiconductor assembly test services (OSAT) market. 

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Semiconductor Devices
Discrete Semiconductors
Optoelectronics
Sensors
Integrated Circuits
By Semiconductor Equipment
Front-end Equipment
Back-end Equipment
By Semiconductors Materials
Fabrication
Pacakging

Semiconductor Industry Size Summary

The semiconductor industry is poised for significant growth in the coming years, driven by the increasing demand for semiconductors in emerging technologies such as artificial intelligence, autonomous driving, the Internet of Things, and 5G. Semiconductors are becoming the fundamental components of modern technology, influencing all subsequent technologies. These devices, which utilize semiconducting material to produce transistors, diodes, and other functional units found in integrated circuits, are known for their affordability, reliability, and compact size. The industry's growth is fueled by intense competition among key players and consistent investment in research and development, pushing vendors to innovate and gain a competitive edge in the market. The demand for semiconductor devices is expected to rise due to the widespread adoption of electrification and autonomy by businesses. Electric vehicles, which rely heavily on electronics and semiconductors, are leading the movement towards a sustainable future. Governments worldwide are setting ambitious goals for the electrification of their transportation sectors, leading to significant investments in electric vehicle research and development. As a result, semiconductors are becoming the central processing units of EVs, driving their optimal performance. This surge in investment in electric vehicles is anticipated to fuel the demand for the semiconductor market. However, the industry faces challenges such as the need for more skilled workers and long lead times and high capital investments.

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Semiconductor Industry Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Technological Trends

    3. 1.3 Industry Value Chain/Supply Chain Analysis

    4. 1.4 Impact of COVID-19, Macro Economic Trends, and Geopolitical Scenarios

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Semiconductor Devices

      1. 2.1.1 Discrete Semiconductors

      2. 2.1.2 Optoelectronics

      3. 2.1.3 Sensors

      4. 2.1.4 Integrated Circuits

    2. 2.2 By Semiconductor Equipment

      1. 2.2.1 Front-end Equipment

      2. 2.2.2 Back-end Equipment

    3. 2.3 By Semiconductors Materials

      1. 2.3.1 Fabrication

      2. 2.3.2 Pacakging

    4. 2.4 By Semiconductor Foundry Market

    5. 2.5 By Outsourced Semiconductor Assembly Test Services (OSAT) Market

Semiconductor Industry Market Size FAQs

The Semiconductor Industry size is expected to reach USD 0.72 trillion in 2024 and grow at a CAGR of 10.86% to reach USD 1.21 trillion by 2029.

In 2024, the Semiconductor Industry size is expected to reach USD 0.72 trillion.

Semiconductor Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)